Standard Chartered Cuts 2025 Ethereum Price Target 60% Amid Coinbase Profit-Taking

Standard Chartered has revised its 2025 price target for Ethereum (ETH), reducing it from $10,000 to $4,000. This adjustment is attributed to the profit-taking actions of Coinbase, which has reportedly sold 12,652 ETH, valued at approximately $37 million, during the fourth quarter of 2024. This move by Coinbase has had a notable impact on the market dynamics of Ethereum, as the increased activity on the layer-2 network Base has not translated into sustained price growth for ETH.

Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, provided insights into this situation. He noted that while increased activity on Base does drive demand for ETH, the profits generated from these activities are often repatriated back to Coinbase through the sale of ETH. This profit-taking behavior effectively negates the advantages that increased layer-2 activity might otherwise bring to the Ethereum network.

Kendrick's analysis highlights a critical aspect of the crypto market: the influence of exchanges on price dynamics. Coinbase's decision to sell ETH during a period of higher prices is seen as a strategic move to optimize profits. This behavior, while rational from a business perspective, has broader implications for the Ethereum ecosystem. The net selling of ETH by Coinbase counteracts the positive effects of increased layer-2 transactions, potentially leading to a scenario where Ethereum's governance and economic health are heavily influenced by external factors such as exchange behavior and market psychology.

Despite the bearish forecast from Standard Chartered, Ethereum has shown resilience in recent market movements. The cryptocurrency has experienced gains of 5.6% on the day and 4.6% over the week, indicating strong investor sentiment. Additionally, data from decentralized prediction market MYRIAD suggests that over 70% of users anticipate Ethereum’s relative price to Bitcoin will exceed $0.023 by the end of the week, reflecting ongoing optimism in the market.

In conclusion, while Standard Chartered’s revised price target for Ethereum raises concerns, the current market trends reveal a complex interplay between Coinbase’s operational decisions and the overall performance of Ethereum. The cryptocurrency’s resilience, despite profit-taking, suggests that the ecosystem is adapting to new economic realities. Investors are advised to closely monitor these developments, considering both market sentiments and structural changes within the blockchain technology landscape.